JPMorgan Sees Eightfold Earnings Growth for Kingboard Laminates Amid Glass Fabric Shortage

JPMorgan has initiated coverage on Kingboard Laminates (01888.HK) with an 'Overweight' rating and a target price of HK$65. The firm believes that explosive demand from AI and general-purpose servers has triggered a severe shortage of electronic-grade glass fabric, positioning the company at the starting point of a new upcycle.

The report's central thesis revolves around the supply-demand imbalance in electronic-grade glass fabric, with prices rising over 100% since the beginning of this year. JPMorgan expects this shortage pressure to persist through 2027, driving Kingboard Laminates' integrated profit margins and market share higher.

The firm projects earnings per share will grow eightfold between 2025 and 2028, driven by a cumulative 150% increase in CCL blended average selling prices, capacity expansion projects, and the ramp-up of HVLP1-3 copper foil capacity. JPMorgan's bullish view rests on three pillars: tight glass fabric supply, rising copper foil processing fees, and sustained expansion in AI server demand.